The Language
of Remodeling
You’ve bought your first home. Now,
you want to update the kitchen, expand a bathroom or two or finish the
basement. As you interview potential contractors, words like building
permits, call-back policy and lien release are used, and you find
yourself lost in the jargon. Here’s a helpful glossary of common
terms used by builders and remodelers that will help you understand
the language of your remodeling project. Knowing the full meaning of
these terms can help you avoid miscommunication with your contractor
and ensure a smoother remodeling experience.
Allowance: A specific
dollar amount allocated by a contractor for specified items in a
contract for which the brand, model number, color, size or other
details are not yet known.
Bid: A proposal to
work for a certain amount of money, based on plans and specifications
for the project.
Building Permit: A
document issued by a governing authority, such as a city or county
building department, granting permission to undertake a construction
project.
Call-back: An informal
term for a return visit by the contractor to repair or replace items
the homeowner has found to be unsatisfactory or that require service
under the warranty.
Certified Graduate Remodelor (CGR):
A professional designation program offered through the National
Association of Home Builders (NAHB) Remodelors Council™. To attain the
CGR designation, a remodeler must take a specified number of
continuing education courses and must comply with a strict code of
ethics.
Certified Aging-in-Place
Specialist (CAPS): CAPS professionals have been taught the
strategies and techniques to meet the home modification needs of
homeowners who want to continue living in their homes safely,
independently and comfortably, regardless of age or ability level.
CAPS graduates pledge to uphold a code of ethics and are required to
maintain their designation by attending education programs and
participating in community service.
Change Order: Written
authorization to the contractor to make a change or addition to the
work described in the original contract. The change order should
reflect any changes in cost.
Cost-plus Contract: A
contract between a contractor and homeowner based on the accrued cost
of labor and materials plus a percentage for profit and overhead. Also
known as a time-and-materials contract.
Draw: A designated
payment that is "drawn" from the total project budget to pay for
services completed to date. A draw schedule typically is established
in the contract.
Lien Release: A
document that voids the legal right of a contractor, subcontractor or
supplier to place a lien against your property. A lien release assures
you that the remodeler has paid subcontractors and suppliers in full
for labor and materials.
Mechanic’s Lien: A
lien obtained by an unpaid subcontractor or supplier through the
courts. When enforced, real property—such as your home—can be sold to
pay the subcontractor or supplier. If a subcontractor or supplier
signed a lien release, then this lien cannot be enforced.
Plans and Specifications:
Drawings for the project, and a detailed list or description of the
known products, materials, quantities and finishes to be used.
Punch List: A list of
work items to be completed or corrected by the contractor, typically
near or at the end of a project.
Subcontractor: A
person or company hired directly by the contractor to perform
specialized work at the job site. Sometimes referred to as a trade
contractor.
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